Buying a Home in 2021? Here Are 3 Things to Keep in MindReturn to Blog
Owning a home is a huge undertaking but a potentially rewarding one. When you buy a place of your own, you get to build equity in an asset that can increase in value over time. You also gain the stability of not having a landlord who can decide to renew your lease or not. But if you think that 2021 is the year for you to buy a home, you should know what the housing and mortgage market could have in store. Here are a few things to keep in mind:
You might pay more than you think:
According to the Mortgage Bankers Association, the average buyer took out a $375,000 mortgage to purchase a home as of late November. Home values across the country have skyrocketed in 2020, and once 2021 kicks off, they're apt to stay that way. If you're hoping to buy in 2021, prepare to pay a premium, especially early on in the year, when prices and inventory will likely be comparable to what they are now. We recommend you take some time this year to review your budget and then establish an outer limit for what you can pay.
Your selection of homes may be different:
It's too soon to know what inventory will look like in 2021, and much will depend on how the pandemic plays out. But at the very least, expect limited housing inventory at the start of the year and understand the shortcomings that come with it. We recommend making a list of must-haves for your home and stick to it. This way, you avoid settling for a place with features you're unhappy with having.
Act on a low mortgage rate if your credit score is great:
Mortgage rates recently hit their 14th record low, so they'll likely hover at ultra-competitive levels for at least the first part of the year. While mortgage rates may climb as 2021 progresses, there's a strong chance they'll stay attractive throughout the year, especially as the U.S. economy attempts to stage a recovery — which allows you to snag some savings!
If you have questions or need assistance in your home buying or selling process this upcoming year, call or text Darryl Glass at (510) 500-7531 today. If more convenient, you may also schedule a call or virtual meeting with Darryl below: